Seplat Completes OMLS 4, 38, & 41 Intragroup Transfers
Seplat Petroleum Development Company (SPDC), Thursday announced the completion of the transfer of the business activities and assets of OMLs 4, 38 and 41 from the Holding Company to its wholly-owned Subsidiary Seplat West Limited.
SPDC, is a leading Nigerian indigenous oil and gas company dual-listed on the Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE),
The company secretary/chief governance compliance officer, Mrs. Edith Onwuchekwa disclosed in a signed statement that,” following regulatory and partner approvals, the transfer is effective January 1, 2020”
The statement titled ‘’ intra-group transfer of OMLs 4, 38 and 41 from Seplat petroleum development company Plc. (“the company” or “Seplat Plc” or “Seplat” or “the holding company”) to Seplat west limited (“the subsidiary”) further disclosed “’ This Intra-Group transfer has been planned for some time and will not result in any change to the current business strategy for any of the assets nor will it affect the way in which the Seplat Group commercially operates.
The announcement made in compliance with Rule 17.6 of the NSE Issuers Rule, stated that “the operatorship of the asset remains with Seplat under the Joint Operating Agreement (“JOA”), as the transfer to an affiliate of Seplat under the terms of the JOA is permitted”
Explaining the rationale for the intra-group transfer of assets, Seplat explained that “The transfer of OMLs 4, 38 and 41 out of Seplat Plc into Seplat West results in seven (7) wholly-owned subsidiaries – Newton Energy Limited; Seplat Petroleum Development Company UK Limited; Seplat East Onshore Limited; Seplat East Swamp Company Limited; Seplat Gas Company Limited; Eland Oil and Gas Limited and Seplat West Limited, with no operating oil and gas assets directly held in the Holding Company.
The new structure of the Seplat Group, the company stressed, is consistent with Seplat’s efforts to simplify its structure and is designed towards segregating the businesses of the Group in a more efficient manner thereby reducing risk, cost and complexity.
“This is also expected to result in simplified management and reporting framework for the Seplat Group”’ as it added that the transfer will not result in any tax revenue loss to the government, nor weaken shareholders’ investment worth.
“The outcome of the transfer will not, in any way, result in loss of tax revenue to the Government or extinguishment of liabilities. Similarly, it will not diminish shareholder value in (and returns from) Seplat as a listed company, adding that “’ Following discussions with the credit rating agencies, the transfer is not expected to impact the ratings of the Group.
Seplat Petroleum Development Company Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, listed on the Main Market of the London Stock Exchange (“LSE”) (LSE: SEPL) and Nigerian Stock Exchange (“NSE”) (NSE: SEPLAT).
Seplat is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programs by the international oil companies, farm-in opportunities, and future licensing rounds.
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